Older adults who are preparing for retirement in Rhode Island usually expect to receive Medicare coverage. Medicare is an age-based program available to most adults at or past retirement age in the United States. While Medicare is an invaluable support for older adults, it is not a perfect solution for covering medical costs later in life. Medicare does not cover all types of medical expenses but only some of them.
Occasionally, older adults will need Medicaid because they must move into a nursing home or require the help of skilled professionals in their homes. People can qualify for Medicaid for those costs, but they may need to plan ahead or risk having nothing to leave their loved ones when they die.
Medicaid wants to recoup what it spends
Medicaid provides medical coverage for those with limited income and personal assets. When someone applies for Medicaid benefits related to long-term care needs as they age, the review process will look at their current financial circumstances and the last five years of their major financial transactions. If someone qualifies, Medicaid will pay for their care, but the state will seek reimbursement later.
Both federal Medicaid rules and Rhode Island state statutes require attempts at recovery when Medicaid covers expenses for older adults. Estate recovery efforts can involve placing a lien against someone’s home after they die or making a claim against their estate in probate court.
Medicaid claims have priority consideration over inheritance rights. Heirs expecting to inherit from someone’s estate or beneficiaries listed in someone’s will may lose the inheritance they expected to receive because of the Medicaid benefits the decedent required later in life.
Thankfully, advance planning can help preserve resources and diminish estate claims after someone’s death. Property held in a trust or owned jointly with other people will often have protection from recovery efforts. Those preparing for retirement often engage in long-term care planning with the intention of protecting their assets from recovery efforts after they die.
